Forex Signals – Euro Zone Relief
We had one of those weeks where market was overwhelmed by the fundamentals in the market. Yesterday we saw EURUSD zone policymakers striking a deal at the 11th hour which included haircut for Greece,expansion of the bailout fund and ways on recapitalizing European banks. Result of which was a big move up in the EURUSD and now lets see what it holds for the rest of the week.
Lets look at EURUSD weekly chart:
(click to enlarge)
Price rallied yesterday and touched the rising Trendline which was broken few weeks back. We may see some Resistance at this level, however if price continues to move up then 1.4300-50 area where falling Trendline meets would act as a major Resistance level.
Look for strong signals to go short at 1.4250 area and again at 1.4350 area if price continues to climb up. In case there is a strong momentum to the upside look for longs with caution ideally after 1.4350.
I'm hearing mixed signal regards eurusd. On the one hand look to go long around trendline at 3950 and also look to short below 3900. Can you clarify, please?
Hi Conrad,
That's correct 3900 would signify a clear Breakout of Trendline on daily chart. Once price move below 3900 we can start to look for short trades.
3950 is the area when continuation of bullish uptrend can resume. After we posted the analysis price did came close to 3975 and moved up by 75 pips.
Note to others: Comment from Conard and my reply is in regards to latest post http://forex.firepips.com/euro-dollar-prediction….